Rabobank Australia CEO Peter Knoblanche said clients would receive further details on the bank’s FMD offset solution – which will involve an adjustment for eligible customers with farm management deposits and rural loans – in coming weeks.

“The bank has reviewed its product offering – particularly in light of the current severe dry conditions facing farmers in parts of the country – and is pleased to advise it will implement a solution to assist loan clients to offset interest on their FMDs against their loan interest,” he said.

“This benefit will be in addition to other options the bank’s clients already have to manage their interest costs through their flexible specialist rural loans.”

The bank last week announced a range of measures it has in place to support clients impacted by current drought conditions, and confirmed it will not apply higher (penalty) interest rates on loans in default due to drought and in cases of natural disaster.